Whats needed for auto financing?

One of the biggest complaints consumers make about dealerships is the time spent waiting at a dealership. This generally occurs in-between selecting a car and waiting to sign paperwork on it. The process of obtaining finance and the best loan scenario can take some time depending on the vehicle year and mileage as well as the customers credit history. In our fast pace world, waiting at a dealership can be tumultuous so we have prepared a list of what to bring with you in order for us to speed up this process.

  • Proof of residency-this can include but not limited to a utility bill or phone bill. This cannot be your driver's license or pay stub as we will need that separately.

  • Most current pay stub showing year to date -if it is within the first 3 months of a new year then also bring previous years W2.

  • Drivers License Registration -if you are trading a vehicle in or transferring a plate from another vehicle onto your new purchase then bring in the registration from the vehicle it is transferring from.

  • Trade Title -if you are trading in a vehicle. 

  • Proof of insurance -bring in your most current proof of auto insurance with the company you intend to insure your new vehicle with.

  • Keys -if you have more then one set of keys to your trade bring those in. 

  • Self-Employed -bring in last 2 years tax returns showing adjusted gross income (after deductions).

  • Social Security-If part or all of your income comes from social security we will need awards letters and 3 months of most current bank statements.


Why not just pay cash?

You may be wondering why you should even apply for a car loan from a sub prime lender. After all, paying cash for a vehicle, while using a regular or secured credit card, can often improve your credit scores. The fact is doing this probably wont help your auto credit, even if it improves your FICO scores. The reasoning behind this is that any type of credit card is a form of revolving credit. With revolving credit if you don't pay off your card balance every month, you are allowed to carry over the remaining balance to the next month. An auto loan, on the other hand, is a type of installment credit. With this type of loan you sign a contract to pay back the initial amount, plus interest, for a fixed payment each month over the loan term. Another difference that separates installment credit from revolving credit is that installment loan balances are typically higher than revolving credit limits. Installment loans also carry a higher monthly payment as a percentage of the loan balance and are much less flexible to changes. This means installment buyers have to be more disciplined in paying back the loan.